OKEx Korea shutting doors in April as Bitcoin eyes a gigantic technical breakout

OKEx, a renowned cryptocurrency exchange, has announced its intention to close down its subsidiary based in South Korea on April 7. The news was communicated through a notice sent out on Tuesday. However, the exchange did not say directly why it will be shutting down.

OKEx Korea announces exit plan as Bitcoin stabilizes

OKEx Korea’s customers have been requested to withdraw all their funds from the platform before April 7. The exchange has said that it will not take responsibility for any losses incurred because of failing to withdraw funds in time.

OKEx becomes the second exchange to shut down the Korean market after Binance Korea closed just months after opening. The exchange did not say why it is making this move. However, Binance Korea said it was becoming difficult to carry on due to tight liquidity and low trading volume.

It is also likely that OKEx is leaving the market because of the stricter regulations set to gain effect on Thursday. The law prohibits exchanges from sharing order book information with other exchanges. Experts believe that another main exchange, Huobi Korea, could close its doors as well.

Bitcoin has stabilized slightly above $53,000, support it has tested twice in less than 14 days. Recently, BTC traded a new-all time high close to $62,000, but the uptrend was cut short. Declines followed, resulting in the losses currently seeking support at $53,000, as highlighted by the 200 Simple Moving Average (SMA) on the 4-hour chart.

A double-bottom pattern validates the bullish outlook. This pattern is formed when an asset tests a support level twice separated by a peak. Usually, immense support provided by this pattern gives way to a massive technical breakout.

BTC/USD 4-hour chart

Looking at the other side of the picture

Bitcoin must clear the resistance at the 100 SMA to continue with the uptrend eyeing $60,000. More upside action is needed at the 50 SMA to cement the bulls’ presence in the market.

The IOMAP by IntoTheBlock reveals immense resistance ahead of BTC. For instance, the most robust seller congestion zone runs from $55,742 to $56,889. Here, roughly 1 million addresses had previously bought around 503,000 BTC. Trading above this could be an uphill task, thus invalidating the uptrend.

Bitcoin IOMAP model

 Bitcoin’s immediate support levels are not very strong, as highlighted by the model. This means that Bitcoin may fall to the immense support between $46,400 and $48,000. Here, approximately 763,000 addresses had previously purchased roughly 412,000 BTC. This support is in tandem with the support suggested by a prominent analyst, Rafael Schultze.

Not much #Bitcoin realized between here and $51k. Would not be surprised if we dipped a bit more.

Strongest on-chain support currently at $47,400.https://t.co/3GFPTQPp6F pic.twitter.com/NLBQvEIGfB

— Rafael Schultze-Kraft (@n3ocortex) March 22, 2021

Meanwhile, Bitcoin is trading marginally above $54,400, with bulls eyeing liftoff from the technical pattern on the 4-hour chart toward $60,000. Despite the bullish technical outlook, on-chain metrics send a bearish signal. Therefore, it is essential to wait for a real breakout or breakdown before going all-in on Bitcoin.